Want to learn about the death of the HUD-1 settlement statement and what’s replacing it? Come to one of our in-house roundtable discussions and learn!
Remember that 2-page HUD-1 settlement statement we’ve used for decades? The one that was changed to a 3-page form in 2010, with restrictions on how much settlement fees/lender fees could change from the Good Faith Estimate (GFE) to the final HUD. Well, come August 1, 2015, that form is dead.
Here’s why in a nutshell:
On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law. Under the Act, the Consumer Financial Protection Bureau (CFPB) was created. CFPB’s mandate was to “protect consumers by carrying out federal consumer financial laws.” To accomplish this, CFPB combined the Real Estate Settlement Procedures Act (RESPA) disclosures and the Truth-in-Lending Act (TILA) disclosures to make shopping for mortgages easier and to protect against financial surprises at closing.
All applications received after August 1, 2015 are subject to the new regulations.
Generally speaking, (there are exceptions): rather than receiving a preliminary TIL and a Good Faith Estimate (GFE), borrowers will receive a “Loan Estimate” within 3 business days of loan application. And, rather than receiving a final TIL and a HUD-1 at closing, borrowers will receive a “Closing Disclosure” 3 days before closing.
This is where I see the Realtor’s role changing. If the purchaser has questions about the Closing Disclosure, I think they may be directed to the Realtor, so it’s a good idea to familiarize yourself with this document.
I’ve been through the new forms several times, and still find them to be awkward, but just like with the 2010 changes to the HUD-1 we’ll all get used to it.
Mary Ann Trice and I have developed a 30-45 minute presentation to introduce you to the new forms. We’ll be holding small group (5-6 people) presentations on Wednesdays at 4:00 beginning in late October. Call and sign up, or get a group of your associates together and reserve a date. To make a tedious topic easier, we will be serving beer, wine, and soft drinks.
Court Square Title: (434) 979-7799
Court Square Title of Charlottesville, Inc.
Please Note: Articles written by CST employees are the opinions of licensed title insurance agents and are based on experience as such. They are not to be taken as legal advice.